India has seen a major shift in its defence import strategy over the years. It has moved from the “offsetting” strategy, where foreign partners were mandated to reinvest a proportion of the contract in India, to a more sustainable transfer of technology (ToT) and local assembling of imported components. This transition has meant a tectonic shift towards creating and strengthening a self-reliant, indigenously developed defence-industrial complex along with the armed forces and ensuring the successful implementation of the "Make in India" strategy.
As the word suggests, ToT involves the transfer of knowledge, expertise, and intellectual property rights from foreign entities to the Indian partner, typically through licensing agreements, joint ventures, or technology transfer programmes. The local assembly or domestic manufacturing is about products that are manufactured from imported components, parts or semi-finished products, with final assembly taking place at home.
A great example of the local assembly is the import of knock-down kits in the car industry to be assembled in India. thyssenkrupp Marine Systems (tkMS), the German-based providers of naval vessels, surface ships and submarines, has not only built a global reputation and illustrious track record for its performance in the maritime industry, but has also been admired for its unrivalled commitment to the development of international industrial co-operation through strategic partnerships. The German major has promoted exchange of knowledge and resources globally to effectively transfer innovative technologies and solutions for various international companies and governments. A very early example of this is the highly successful 209 class submarine programme with Mazagon Dockyard Ltd in India.
Creating synergies for advanced submarines
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